ROLLS ROYCE GRP ADR (RYCEY), Bellway PLC (OTC: BMWYY) – If you had invested $ 1,000 in Rolls-Royce shares a year ago, this is how much you would have now
Investors who have held stocks in the past year have generally seen large gains. In fact, the SPDR S&P 500 (NYSE: SPY) Total return over the past 12 months is 31.8%. But there’s no doubt that some big-name stocks have fared better than others along the way.
Rolls-Royce’s bumpy race: One company that has been a decent investment over the past year has been the British manufacturer of aerospace and defense engines. Rolls-Royce Holding PLC ADR (OTC: RYCEY).
Many investors are familiar with Rolls-Royce Motor Cars, which once produced luxury automobiles. However, Bmw (OTC: BMWYY) acquired Rolls-Royce Motor Cars for $ 570 million in 1998. Today, Rolls-Royce is the world’s second-largest producer of aircraft engines, behind only General Electricity Company (NYSE: GE).
Like many other industry titles, Rolls-Royce’s business has been hit hard by the pandemic. In 2019, Rolls-Royce reported a net loss of $ 1.79 billion and 5.5% revenue growth. In 2020, Rolls-Royce’s net losses jumped to $ 4.32 billion and revenues plunged 28.7%
In early 2020, Rolls-Royce shares were trading at around $ 8.99. In early March, the stock had fallen to $ 8.08 after news of the spread of the coronavirus in China raised concerns about a pandemic.
Rolls-Royce finally hit a low of $ 3.04 in early April, just weeks after the S&P 500 bottomed. Unfortunately for Rolls-Royce investors, the post-pandemic rebound did not last long.
In June, Rolls-Royce shares were back above $ 5, but they quickly fell below $ 5 and haven’t come back since.
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In fact, Rolls-Royce shares fell to their 2020 low almost exactly a year ago, hitting $ 1.38 on October 2. The stock climbed back to $ 3.56 in November before stagnating again.
Rolls-Royce in 2021, beyond: So far, Rolls-Royce’s publicly traded shares have not returned above $ 2 in 2021. After hitting a new all-time low of $ 1.21 in July, the stock has since rebounded as high as $ 1.21. ‘to $ 1.99 in September.
Still, the Rolls-Royce investors who bought the stock decline exactly one year ago and held on have delivered a significant return on their investment. In fact, $ 1,000 of Rolls-Royce shares purchased on October 5, 2020, would be worth around $ 2,923 today, assuming reinvested dividends.
Looking ahead, analysts expect Rolls-Royce stock to continue to rebound over the next 12 months. The average price target among the 14 analysts covering the stock is $ 4.88, suggesting a 157.9% increase from current levels.
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